Monday, January 03, 2011

Here's a simple idea why the US automakers are doomed to never be great and profitable again, 3X more retirees than employees

The Detroit Three's 267,000 hourly retirees and 72,000 surviving spouses
GM has 53,000 hourly employees and Ford has 41,000.

Read more:

So, if you're curious why a new car costs 6 times more now than in the 60's, 2wice as much as in the 80's... you might draw the connection between the increase in # of retirees and the increase in the cost of a car, I bet that would chart a straight line, lower left to upper right.


  1. Then explain how similar models across all manufacturers cost roughly the same.
    Either all manufacturers have the same problem, or those without a pension problem are jacking up their prices when they could be taking advantage of American manufacturers but don't.
    Past failure to innovate and complacent corporate bureaucracy are more likely culprits.

    This sounds like anti-union bs.

    1. is this something you want to discuss? or just comment on?